Zakah expenditures are only for the poor and for the needy and for those employed to collect [zakah] and for bringing hearts together [for Islam] and for freeing captives [or slaves] and for those in debt and for the cause of Allah and for the [stranded] traveler - an obligation [imposed] by Allah. And Allah is Knowing and Wise (Surah 9:60)
وعن أبي هريرة رضي الله عنه قال: قال رسول صلى الله عليه وسلم: "كل سلامى من الناس عليه صدقة، كل يوم تطلع فيه الشمس: تعدل بين الاثنين صدقة، وتعين الرجل على دابته فتحمله عليها، أو ترفع له عليها متاعه صدقة. والكلمة الطيبة صدقة، وبكل خطوة تمشيها إلى الصلاة صدقة، وتميط الأذى عن الطريق صدقة" ((متفق عليه)).
Abu Hurairah (May Allah be pleased with him) reported: Messenger of Allah (ﷺ) said, "On every joint of man, there is charity, on everyday when the sun rises: doing justice between two men is charity, and assisting a man to ride an animal or to load his luggage on it is charity; and a good word is charity, every step which one takes towards (the mosque for) Salat is charity, and removing harmful things from the way is charity". [Al-Bukhari and Muslim]. Arabic/English book reference : Book 1, Hadith 248
Zakat, one of the five pillars of Islam is an obligatory act upon all qualifying Muslims and is the undertaking of submitting a set percentage of his or her profitable wealth to charity. In simple words, Zakat refers to purification in general and purification of wealth in particular, therefore, those Muslims who have wealth over a certain ratio, they are liable to pay Zakat on it and give it to those who are less fortunate and don’t have sufficient means to live their life in a standard way.
Zakat-ul-Fitr: It is obligatory on every Muslim who has food that is surplus to his needs and the needs of his family members on the last night of Ramadan and Eid Festival Day.
Voluntary Charity (Sadaqa): The Messenger of Allah (saw) said: "Verily, what reaches a believer of his good deeds after his death is: knowledge that he have taught and publicized; a pious son who supplicates for him; a book of Qur'anic script us (Mus'haf); a Mosque that he built; a rest house that he built for the travelers; a water canal that he made; and any charity that he spent while healthy and alive; all this will reach him after his death." (Ibn Maajah)
IMPORTANCE OF ZAKAT:
Besides the fact that zakat is an obligatory act of worship in Islam and that Muslims get immense blessings by paying zakat, there are other reasons of how zakat is an important factor of the Muslim community.
Helping the Community at large
The most important benefit of zakat is that it helps to build society. If everyone keeps on saving the money and spend on themselves, then the less privileged will always remain poor. Therefore, with the help of zakat, people learn to support others in need. Zakat gives all the Muslims an opportunity to create a huge impact in the lives of deserving people.
Money Circulation
With the help of zakat, your money circulates in the whole economy. As Zakat is an obligatory act, Muslims who are financially stable, pay zakat to the needy. This way, money gets out of the ones who are wealthy enough and reaches those who are not much privileged.
Act of Sacrificing
In today’s world, wealth has become an important aspect of life that everyone loves to have. Therefore, when a person pays from his wealth in the form of zakat, it means he/she is sacrificing wealth in the path of Allah.
Zakat cannot be given to anyone in need. There are eight kinds of people to whom zakat can be given as mentioned in the Quran:
Al-Fuqara: They don’t have enough wealth to meet the basic necessities of life.
Al-Masakin: These people don’t have any type of income or possessions.
Zakat Collectors: The administrators or organizations who are authorized to receive zakat to distribute among the poor people.
Those who converted to Islam: People who newly converted to Islam and have no means to survive because of detachment from family.
Slaves and Captives: Those who are kept as slaves. Your zakat can help freeing captives or slaves.
Debt-Ridden: Those who have no means to pay off their debts.
In the cause of Allah: Those who are fighting in the path of Allah are entitled to receive zakat.
The Wayfarer: A traveler who is left alone in another land and is in dire need of money to get back to his home.
Islam has guided us to make this world a better place by supporting those who are less privileged. Therefore, Islam puts great emphasis on charity and zakat. Muslims should do the calculation of their zakat carefully before giving any amount to poor people.
Rest Allah knows best.
Source: Quran, Sunnah, Tafsir Ibn Kathir, In the shade of the Qur'an, An Explanation of the Last Tenth of the Noble Qur'an [Also with Critical Matters in the Life of a Muslim] Paperback – 2007; www.tafseer.info